Sie sind auf Seite 1von 17

A HUMBLE OFFERING

STRATEGIC MANAGEMENT PRESENTATION

THE
TRANSFORMATIVE
BUSINESS MODEL
How to tell if you have one

BY STELIOS KAVADIAS, KOSTAS LADAS, AND CHRISTOPH LOCH

What is a business model?


Business model is a system whose various features interact, often
in complex ways , to determine the companys success.
It describes how a company creates & captures value.

The new business model serves as the interface between what


technology enables and what the marketplace wants.

Transformative Business Model An Example


Fact file
Founded in 2008
Has more rooms than InterContinental or Hilton Worldwide.
Represents 19.5% of the hotel room supply in New York.
Operates in 192 countries & accounts for 5.4% of room supply.

Transformative Business Model An Example


Does not own or manage properties.
Allows users to rent any liveable space through an online platform that matches individuals looking for

accommodations with home owners willing to share a room or a house.


Manages the platform and takes percentage of the rent.
Charge lower prices since there is no large investment.
Risks are much lower than those of traditional hotels.
Redefines the value proposition by offering a more personal service at a cheaper cost.

Before platform technology existed, there was no reason to change


the hotel business in any meaningful way. But after its introduction,
the dominant business model became vulnerable to attack from anyone
who could leverage that technology to create a more compelling value

proposition for customers.

The newbusiness model serves as the interface between what technology


enables and what the marketplace wants.

Features of TRANSFORMATIVE BUSINESS MODEL


1. Personalization

2. A closed-loop process
3. Asset sharing

4. Usage based pricing


5. A collaborative ecosystem
6. An agile and adaptive organization.

Each feature is tied to long-term trends in both technology and demand.

From Innovation to Transformation


More of the six features a new business model has, the greater its
potential to transform a given industry should be.

Business models with transformative potential tend to have three


or more of the six features.

The taxi service company Uber ticks no fewer than five boxes.

S No. ORGANIZATION

AIRBNB

USAGEPERSONALIZ CLOSED ASSET


BASED
BUSINESS INDUSTRY ATION
LOOP SHARING
PRICING

COLLABORATIV
AGILITY SCORE
E ECOSYSTEM

REAL ESTATE

2ALIBABA

RETAIL

3AMAZON

RETAIL

5APPLE IPOD

ELECTRONICS

7CANON

ELECTRONICS/COPIERS

8COURSERA

EDUCATION

9DELL

ELECTRONICS

12GOOGLE ADWORDS

ADVERTISING

14IKEA

RETAIL

23NATURA

COSMETICS

24NIKE ID

FOOTWEAR

29SALESFORCE.COM

SOFTWARE

TAXI OPERATION

33

UBER

37XEROX

ELECTRONICS

2
3

From Innovation to Transformation


UBER
Business model is built on asset sharing the drivers use their own cars.

Has developed a collaborative ecosystem.


Creates agility through internal decision making system responds real time to market
changes.

Usage based pricing direct drivers to locations where probability of finding a fare is high.
Driver rating scheme - pushes drivers to offer clean cars and quality service, providing
personalization.

Healx: A Case Study


Healx (a technology venture), focuses on the treatment of patients

with rare diseases in the emerging field of personalized medicine.


BIG CHALLENGE : The market for rare disease drugs are vey small
charge astronomical prices.

Healx: A Case Study


Provides a platform an amalgamation of big data technology & analytics.
Fulfils 3 out of 6 features:
1.

Asset Sharing : making available clinical - trial databases that record the effectiveness
of most drugs across therapeutic areas and diseases, including rare ones.

2.

Personalization: revealing drugs with high potential for treating the rare diseases
covered.

3.

Collaborative ecosystem: bringing together big pharma & and health care providers.

Healx: A Case Study


At first Healx struggled to get pharma companies to join the platform.
Healx team spotted an opportunity to give companies an incentive.
Healx has developed a machine learning algorithm - use a patients biological

information to match drugs to disease symptoms & to predict exactly which drug will
achieve what level of effectiveness - brings personalization and adds agility.
Healx is able to support decentralized, real-time, accurate decision making.

Healx has already generated revenue from customers and in the long
term it could empower patients by giving them much more
information before they consult a medical practitioner

To Sum it up
Ensure that the business model links market needs with emerging
technologies. The more such links are made, it is more likely that the
industry is transformed.